How to give to charity – not the taxman

Many of us still don’t think about tax when we give to charity, but with a range of methods available, there’s no excuse not to maximise donations.

If you are planning to give to charity over the festive season, make sure you do so in the most tax-efficient manner. Two-thirds of us still don't even think about tax when we give, but with a range of methods available, there's no excuse not to maximise charitable donations: the more the charity gets and the less the taxman takes in the process, the better, surely?

Last year, says the FT, the Government handed back £512m to charities, £240m to higher-rate taxpayers and gave £25m of relief on payroll giving, thanks to people using tax-efficient ways to give. But a great deal more could be done. The Charities Aid Foundation estimates that if half the £5bn currently given by UK taxpayers was done in a tax-efficient way, the charitable sector would net an extra £500m in tax relief.

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